GREC REnews, 2019 September

GGRREECC RREENNeewwss September 2019
Volume 15 Issue 9

Monthly Newsletter of the Georgia Real
Estate Commission

This Issue

2019 Calendar

Records & Avoiding Violations P. 1

Disciplinary Stats

P. 1

Common Violations Class October 1 2019
East Metro BOR Covington GA www.embor.com

AMK Section

P. 2

Focus on Terminology

P. 2

Appraisers Page published next issue

Records Audits & Avoiding Violations

October 7 2019 Golden Isles AOR Brunswick GA 912-264-2915
Georgia Instructor Training Workshops (GIT) October 16 & 17 2019
GA Association of Realtors Atlanta GA
Link to the Georgia Real Estate License Laws Rules and Regulations

The purpose of the Georgia Real Estate Commission is to safeguard the public interest in real estate. This is accomplished by ensuring compliance with the Georgia Real Estate License Laws Rules and Regulations. One way GREC ensures compliance is by routinely conducting random audits of the records of real estate brokerage firms.
An audit begins with a desktop review of firm records requested by a Commission Investigator. Most reviews are complete after this step. Sometimes the Investigator may need to interview the broker or make an onsite visit to the firm. If violations of the License Law or Rules and Regulations are found then the licenses of both the broker and the firm may be disciplined by the Commission.
A recent case illustrates violations found during a routine audit. A qualifying broker in Atlanta Georgia was found to have committed the following violations (1) failed to have a complete trust account journal and monthly reconciliation statements for the firm s trust account (2) failed to properly account for and maintains funds in the firms trust account by (a) commingling funds belonging to the broker with the funds of others (b) improperly disbursing $2 000 from the account to the firm s operating accounts on June 30 2018 and (c) allowing the trust account to fall short from January to March 2018 when sufficient funds were deposited in said account.
The broker was disciplined and paid $800.00 in fines and cost reimbursements and was required to complete a three-hour Commission approved course on avoiding trust account trouble.
Job Opening at the Georgia Real Estate Commission

Link to GREC Disciplinary Actions View Current
Suspensions and Revocations

Click the following link http //grec.state.ga.us/PDFS/About/HireInfoSpec2019-3.pdf to obtain further information regarding qualifications and the application process for the
position of Information Specialist.

Link to Proposed Rule
Changes

Click Here

Click here to review a legend of the disciplinary actions the Commission may impose.
Page 1

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H
Online Courses from GREC
$10 each 3 Hour CE
Course
Total of 9 Hours CE Available
(Also Approved as Instructor CE not approved as License Law CE)
"Avoiding Trust
Account Trouble"
"Practicing Real Estate & Staying Out of Trouble"
"Being a Broker and Staying Out of Trouble"
Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta GA 30303-1605 Phone 404-656-3916

GREC RENews September 2019 Volume 15 Issue 9

bsolutely ust now Section

The Broker is required to maintain records for 3 (three) years.

Records may be maintained in any records storage system

that utilizes paper film electronic or other media provided that

the documents can be made available to the Commission

upon request. The licensee can also produce copies of the

documents and records. Those required documents include

Closed sales transactions settlement statements

Offers Contracts Contracts not closed

Trust Account records to include all documentation regarding trust funds such

as all deposit slips reconciliation statements and disbursals for any trust funds

(whether the transaction closed or not)

Leases Rental Agreements

Listing Agreements Management Agreements

Buyer Agency Agreements

Dual Agency consents

Bank records accounting records

Advertising

Independent Contractor Agreements



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Communications between the Broker and licensees

Records of training provided by the Broker.

Rule 520-1-.10 Handling Real Estate Transactions. (4) Retention of Copies of Records and Documents. Copies of sales contracts brokerage engagements closing statements leases and other documents related to a real estate transaction required by law to be maintained in a broker s file for three years shall be made available to authorized agents of the Commission upon reasonable request and at a reasonable cost to the Commission....

Focus on Terminology "Audit"
The term "audit" as defined by Webster s Dictionary is both a noun and a verb.
Noun a methodical examination and review a formal or official examination and verification of an account book.
Verb to examine with intent to verify. The broker must have a good record keeping system and maintain clear and organized records. The GREC "Office Practices and Trust Account Review" document is available on the GREC website. This document is used for conducting routine reviews and audits of Brokers and firms to ensure their compliance with current GREC rules and regulations. It provides an excellent review and virtual checklist to help the Broker review policy and practices of the firm. The Trust Account(s) of a brokerage firm is subject to audit as well as other records and documentation. In some disciplinary cases a firm Trust Account may require periodic audit by an independent accountant. The Georgia Real Estate Commission School ( www.jmre.com/grec/ ) also has a list of ideas and tips for brokerage management and a basic trust account checklist.
(Reference 43-40-20 and 520-1-.08)
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